The hideOUT Premium Residential Complex will be Russia's first development project where private investors will have access to digital financial assets linked to the value of a physical square meter. This was announced at the Movement real estate forum by Dominanta, the developer of the hideOUT residential complex, and the project's financial partner, VTB Bank. The total value of the first digital financial assets to be issued will amount to 1.5 billion rubles, with active sales starting on July 1.

The hideOUT Residential Complex is currently under construction in western Moscow and consists of two towers, 34 and 49 floors tall, connected by a bridge at the 22nd floor level. The price for one digital lot of 1 sq.m. at the initial stage of DFA sales will be 600,000 rubles, which will significantly lower the entry threshold for retail investors into the premium real estate investment market.

These assets have capital protection similar to an escrow account for purchasing property under construction, and in case of an unforeseen situation, the private investor will receive a refund at the DFA acquisition cost. This means there's no risk of money loss for investors.

"VTB is the first in the country to offer retail investors this financial instrument with the highest level of reliability. As part of the pilot transaction, we're offering DFAs to a select group of qualified investors, and will later expand it to a wider audience. VTB's high level of technological advancement and expertise allows us to finalize deals that become market makers. At the same time, given the high cost of funding, we're the first to offer developers a financing instrument that's not tied to the key rate, which is essentially a hedging instrument. We will be expanding this instrument range further. The volume of the first DFA issue will be 1.5 billion rubles, and active sales will start on July 1," said Vitaly Sergeichuk, a member of VTB's Management Board.

The assets will be available on the Masterchain platform, with Dominanta as the issuer.

"We're grateful to our partners for choosing hideOUT to implement the DFA pilot project — it will be the first premium residential complex in Russia where digital square meters will be available to investors. In addition to the low entry threshold, which will be equal to the average cost per square meter in the complex, each DFA buyer will receive a bank guarantee, confirming hideOUT's high investment potential," commented Dominanta CEO Denis Borodako.

Information about the property's cost per square meter will be made as transparent as possible: there are plans to launch a public index, based on the cost per square meter in the developer's real-life transactions. When the residential complex receives the commissioning permit, the DFA will be redeemed at the market value per square meter. If need arises to sell these securities ahead of time, there is a possibility of their secondary turnover.

DECISION TO ISSUE DIGITAL FINANCIAL ASSETS (PDF)

DECISION TO ISSUE DIGITAL FINANCIAL ASSETS (SIG)